Bond Ratings [Water System Revenue Bonds]
AAA/Aa1
established in
1956
Water System Revenue Debt Outstanding
$2.47 Billion

About California Department of Water Resources

The Department of Water Resources owns and operates the State Water Project (SWP), a water storage and delivery system of reservoirs, aqueducts, power plants and pumping plants extending more than 700 miles—two-thirds the length of California. Planned, constructed, and operated by the Department of Water Resources, the SWP is the nation’s largest state-built, multi-purpose, user-financed water project. It supplies water to more than 26 million people in northern California, the Bay Area, the San Joaquin Valley, the Central Coast, and southern California. SWP water also irrigates about 750,000 acres of farmland, mainly in the San Joaquin Valley.

The Department currently has $2.58 billion in water system revenue bonds outstanding. The debt has a final maturity of December 1, 2035. The State Water Project Contractors are responsible for the payment of debt service on the bonds and are billed annually for their share of the debt obligation. The Department has structured each new issuance of bonds with relatively level annual debt service payments. However, from 2019 to the final maturity of the Department’s bonds in 2035, annual debt service payments will gradually decline from nearly $248 million to approximately $133 million.

The Department has both fixed and variable rate debt outstanding.  Total long-term fixed rate debt outstanding is $2.32 billion (90%) and total long-term variable rate debt is $258.5 million (10%).

Welcome Letter

On behalf of the California Department of Water Resources, I would like to welcome you to our new investor relations website. We appreciate your interest and investment in our Water System Revenue Bonds as they provide us with the ability to make critical investments in public infrastructure throughout the area. We are committed to maintaining our strong bond ratings and providing transparency with the investor community and the public at large.

I hope you find this website useful as you seek to better understand the credit fundamentals of the California Department of Water Resources. Please do not hesitate to contact us with feedback on how we may improve.

Thanks again for your interest in our bond program.

Sincerely,
Vinay Narjit Singh Behl, CPA
Vinay Narjit Singh Behl, CPA
Comptroller & Chief Financial Officer